The inter-ministerial Board of Approval for Special Economic Zones on Tuesday permitted Videocon Realty & Infrastructure Ltd to withdraw its proposed 10 hectare-IT/ITeS SEZ at Jalpaiguri in West Bengal. The Board also allowed the de-notification of Larsen & Toubro Ltd's proposed 11-hectare IT/ITeS SEZ at Coimbatore in Tamil Nadu.
According to an official document, Videocon Realty & Infrastructure had requested for withdrawal of formal approval for its SEZ project stating that the company “is not able to implement the project owing to the latest business outlook of the region.” The project was granted formal approval (after it had obtained the required land) in May 2009.
The development comes amid problems faced by the industry in the State due to land and regulatory issues. In this regard, the Chief Minister, Ms Mamata Banerjee, had recently convened a meeting in Kolkata with industrialists.
Meanwhile, as reason for request to allow the project to be scrapped, Larsen & Toubro had cited “economic unavailability in the changed economic scenario.”
However, the Board has allowed TCS to set up IT/ITeS SEZ in Madhya Pradesh.
Incidentally, many SEZ developers had sought from the Government extra time to implement their existing projects citing lack of investor interest in SEZs due to the imposition of Minimum Alternate Tax and Dividend Distribution Tax, the Direct Taxes Code proposal to withdraw profit-linked deductions for SEZs and the general economic slowdown. The Commerce Ministry, the nodal department concerning SEZs, has already sought suggestions from stakeholders to revamp the SEZ scheme.
